JUDGMENT
1. The Income-tax Appellate Tribunal at the instance of the Commissioner of Income-tax, Lucknow, has referred the following two questions under Section 256(2) of the Income-tax Act, 1961 (hereinafter, referred to as "the Act"), for the opinion to this court :
"1. Whether, on the facts and in the circumstances of the case, the learned Tribunal was legally correct in allowing the assessee's claim under Sections 80J and 80HH of the Income-tax Act ?
2. Whether, on the facts and in the circumstances of the case, and especially in the absence of labour register and also the admitted fact that the mill was not registered under the Factories Act, the registration under the Factories Act, 1948, being obligatory if ten or more persons were employed, there was material with the Tribunal to hold that the assessee-firm satisfied the condition laid down in Sections 80J(4)(iv) and 80HH(2)(iv) of the Act ?"
2. The assessment year involved in the present reference is 1977-78. The respondent-assessee is a rice miller and claimed deduction under Sections 80J and 80HH of the Act which was disallowed by the Income-tax Officer. However, the Appellate Assistant Commissioner following the order dated October 31, 1981, of the Tribunal in the case of Agrawal Rice Mills, Pooran Pur, has allowed the deduction under the aforesaid sections. This order was confirmed by the Tribunal.
3. Heard learned standing counsel for the Department. In I.T.R. No. 198 of 1983, CIT v. Sultan and Sons Rice Mill [2005] 272 ITR 181 (All) connected with the other rice millers including M/s. Agrawal Rice Mills decided on November 5, 2004, it has been held by us that the various processes starting from purchase of the raw material and till the sale of finished goods form the integral part of the manufacturing process and the workers and labourers employed in those processes are workers employed in the manufacturing process within the meaning under Sections 80J(4)(iv) and 80HH(2)(iv) of the Act. Following the aforesaid judgment we find that the Tribunal was legally correct in allowing the assessee's claim under Sections 80J and 80HH of the Act. These provisions do not require that the industrial undertaking should be registered under the Factories Act to qualify for the deductions under the aforesaid provisions. Therefore, question No. 2 is answered accordingly. Both the questions are answered in the affirmative, i.e., against the Revenue and in favour of the assessee.